The ancient Greeks used quantitative easing

What can they teach us?

Quantitative easing is fast becoming common parlance given the Bank of England’s £375bn programme, so it was with enjoyment that I recently read up on some of the history of QE in Schroders’s Dialogue newsletter.

Paraphrasing Philip Coggan at the Secular Market Forum, the article clarified that QE is, despite the media hysteria, nothing new. "2,500 years ago Dionysius of Syracuse called in all coins from his populace on pain of death, re-stamped all the one drachma coins as two drachma, returned the face value of all the money he had seized to his people and used the remainder to pay off his debts."

Startling as the stunt may have been, it gave future leaders inspiration. "Following the reign of Louis XIV at the start of the 18th century," the article runs, "the French monarchy was essentially bankrupt and so turned to a Scottish mathematician, gambler and economist called John Law to come up with a way of paying off the huge debts.

"He did this through a scheme that involved the creation of a joint-stock company, the Compagnie d’Occident, to exploit France’s colonial possessions, and by creating extra money with which to buy shares in the company and keep their value rising." Little surprise that "the scheme became one of the greatest bubbles in history and failed."

So where does the historic tale of woe leave the West?  According to Coggan, author of Paper Promises: Money, Debt and the New World Order, (which won a Spear's Book Award last year) facing the unholy trinity of inflate, stagnate or default.

"Japan has taken the stagnate option over the past 20 years and remains a prosperous place," the article says. "But importantly, its debt is internal whereas Europe’s debt is cross border so creditors will tend to force change rather than kicking the can down the road.

"Due to the fixed exchange rate system, Europe also cannot inflate or devalue, which means default is the only viable option of the three."

Alarming stuff – so let’s hope that Coggan’s history is better than his predicting.

This article originally appeared in Spear's magazine. Read more from Freddy Barker.

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Nigel Farage's exclusive Brexit plan has just been revealed and it's very telling

The panic is over.

If, a week on from Brexit, you're staring at the bottom of your gin bottle and wondering whether you'll ever afford to go on holiday again, then stop worrying. 

There's a plan.

Social media users have been sharing a link to an exclusive reveal of Nigel Farage's plan for the UK departure from the EU. Users are invited to: "View The Brexit Plan that was but together by the Vote Leave campaign, UKIP and Nigel Farage.

Here it is.

Highlighted policy topics include hot potatoes like UK access to the single market, international trade agreements and the rights of EU nationals working in the UK. You just have to click on the red button.

 

Oh. 

It seems the plan might be permanently out of reach. 

Every time you try to click on the red button with your mouse, you'll discover that it leaps away to another part of the page. So far, we haven't heard of anyone who has managed to catch the elusive button and discover the details of the brilliant plan. 

Other plans that have not been very easy to click on this week include: Boris Johnson's plan to be Prime Minister, Jeremy Corbyn's plan to lead a unified Labour opposition and David Cameron's plan to win the EU referendum in the first place.

As it turns out, a week after Brexit we are still waiting for a definitive plan. In the meantime, you can read: